Bryson Sciences is planning to purchase a high-powered microscopy machine for $383,000 and incur an additional $30,800 in installation expenses. It is replacing older microscopy equipment that can be sold for $116,100, resulting in taxes from a gain on the sale of $42,600. Because of this transaction, current assets will increase by $20,000 and current liabilities will increase by $5,100. Calculate the initial cash flow in the high-powered microscopy machine.
Bryson Sciences is planning to purchase a high-powered microscopy machine for $383,000 and incur an additional $30,800 in installation expenses. It is replacing older microscopy equipment that can be sold for $116,100, resulting in taxes from a gain on the sale of $42,600. Because of this transaction, current assets will increase by $20,000 and current liabilities will increase by $5,100. Calculate the initial cash flow in the high-powered microscopy machine.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Bryson Sciences is planning to purchase a high-powered microscopy machine for $383,000 and incur an additional $30,800 in installation expenses. It is replacing older microscopy equipment that can be sold for $116,100, resulting in taxes from a gain on the sale of $42,600. Because of this transaction, current assets will increase by $20,000 and current liabilities will increase by $5,100.
Calculate the initial cash flow in the high-powered microscopy machine.
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